Collateral Types for Commercial Industrial Loans

Under the Collateral Tab the customer is able to "Add Collateral":

All Business Assets (ABA) collateral is a blanket lien covering everything the business owns or will own, maximizing lender protection but restricting borrower flexibility, while Non‑ABA collateral limits the lien to specific assets (see drop down list), reducing lender coverage but giving the borrower more operational freedom.

The loan is secured by an “all business assets” (ABA) blanket lien. The lender has a continuing, first‑priority security interest in substantially all personal property of the borrower, now owned or acquired in the future, wherever located such as (except real estate), including cash, receivables, inventory, equipment, intellectual property, investment interests, and all proceeds.

To view a sample of the GSA for ABA please see link here at General Security Agreement

If you do not want to select ABA collateral you can select other types of collateral from the Add Collateral button:

Once the Add Collateral has been clicked the below fields open:

Accounts and Receivables Collateral:

The collateral is basically everything the business owns today and everything it may own in the future that relates to money owed to the business. Accounts Receivable: All the invoices the business has issued but hasn’t been paid on yet. Anything else that represents someone owing the business money, such as: Payment agreements, Notes, Contract rights, Claims, Payment intangibles, Chattel paper, Letter‑of‑credit rights, Insurance claim proceeds. Any contracts or agreements that entitle the business to get paid. All books, records, and documents tied to the business’ receivables or contracts.

References in the Loan Agreement (Defined Terms, C.4(c), D.9(a)):

References in the Security Agreement (Section A, C):

References in the Exhibit A of the UCC-1:

Chattel Paper as Collateral:

The collateral is all financial documents the company owns that represent money owed to them, including Lease contracts, finance agreements, notes owed to them, shipping & storage documents and all money or value that comes from those documents, now or in the future.

References in the Security Agreement (Section A, C):

References in the Exhibit A of the UCC-1:

Contracts as Collateral:

The lender has a first claim on nearly everything the business owns or earns, now and in the future, to make sure the loan gets repaid. This covers: customer contracts and agreements, vendor and supplier contracts, leases, licenses, and service agreements, purchase orders and sales orders and any rights to get paid under those agreements. Anything similar the business gets in the future automatically becomes collateral.

References in the Security Agreement (Section A):

References in the Exhibit A of the UCC-1:

Deposit Accounts as Collateral:

The lender is taking a claim on the Borrower’s bank money, its bank accounts and CD. To secure the loan, Borrower is pledging its cash and bank accounts as collateral. If it looks like company cash or turns into company cash, it’s part of the collateral.

References in the Loan Agreement (Defined Terms):

References in the Security Agreement (Section A & D):

References in the Exhibit A of the UCC-1:

Equipment as Collateral:

Titled Equipment as Collateral:

To secure the business loan, the borrower is pledging a specific vehicle and everything connected to it as backup for repayment. The borrower cannot sell, lease, or use the car as collateral for another loan without the lender’s permission.The borrower must keep the car insured and in good condition.

References in the Loan Agreement (Defined Terms, section C.4(c), d.9(x)):

References in the Security Agreement (Section A & D):

References in the Exhibit A of the UCC-1:

Specific and General Equipment as Collateral:

To back up the loan, Borrower is pledging its business equipment and anything closely tied to that equipment. This gives the lender something they can take and sell if the loan isn’t repaid.

Almost all physical equipment the business owns or later acquires, anything that goes with the equipment, Leases or purchase agreements, warranties, certificates of title or ownership, rights to payments. The business can’t sell, give away, or heavily encumber this equipment without the lender’s approval.

References in the Loan Agreement (Defined Terms & D):

References in the Security Agreement (Section A & D):

References in the Exhibit A of the UCC-1:

Equity Interest as Collateral:

This is an “all‑assets” business pledge: Borrower has pledged essentially all of its business assets and ownership interests—present and future—as security for the loan, while the guarantor backs the loan personally.

: ownership interests, money and income tied to those interests, business assets (now and in the future), Insurance and legal proceeds and books and records.That means if the loan isn’t repaid as agreed, the lender has the right to take and sell these items to get repaid.

References in the Security Agreement (Section A, F & G):

References in the Exhibit A of the UCC-1:

General Intangibles as Collateral:

This is a very broad “blanket” collateral pledge.The lender has a security interest in almost all of the borrower’s non-physical business assets, now and in the future. If the borrower defaults, the lender can step into the borrower’s shoes and take over nearly all of its non‑physical business value and income rights to recover the loan.

References in the Security Agreement (Section A & D):

References in the Exhibit A of the UCC-1:

Intellectual Property as Collateral:

To secure the loan, Borrower is pledging essentially all of its intellectual property (IP) to the lender (LoanDocSolutions). This gives the lender a legal right to that property if the loan is not repaid. Intellectual Property (current and future): Trademarks (including the registered trademark “abc” in California), Copyrights (none currently registered, but any that exist or are created later), Patents (none currently registered, but any future patents), Trade secrets and know‑how, Software and source code, Domain names and URLs, Customer lists, pricing lists, manuals, and business processes, and Goodwill tied to the brand and products.

References in the Security Agreement (Section A):

Separate Supplemental Intellectual Property Security Agreement see link for sample: Supplemental Intellectual Property Security Agreement

References in the Exhibit A of the UCC-1:

Inventory as Collateral:

To back up the business loan, the Borrower is pledging almost everything it owns related to the business, now and in the future, except real estate: All inventory, business contracts tied to inventory, all money and rights that come from the inventory, and records related to the above.

References in the Loan Agreement (Defined Terms, Section C.4.(c), D.9.(a)):

References in the Security Agreement (Section A):

References in the Exhibit A of the UCC-1:

Investment Property as Collateral:

To secure the loan, the borrower is pledging essentially all of its investment-type assets to the lender: Stocks, bonds, and securities, investment and brokerage accounts, partnership or joint venture interests, options, warrants, and similar financial investments,money and proceeds related to those assets.

References in the Security Agreement (Section A):

References in the Exhibit A of the UCC-1:

Licenses/Permits as Collateral:

For this loan, the lender is not taking equipment, inventory, or real estate. Instead, the collateral is intangible business rights, mainly: any licenses, permits, approvals, or authorizations issued by government agencies. Basically, the lender has a claim on your company’s right to legally operate, if those rights can legally be assigned.

References in the Security Agreement (Section A, D & E):

References in the Exhibit A of the UCC-1:

Manufactured Home Property as Collateral:

The collateral is a specific manufactured home and anything tied to it. More specifically, the borrower is pledging: 1) One manufactured home identified by a specific Vehicle Identification Number (VIN); 2) Everything attached to or included with that manufactured home, such as built‑in fixtures or related personal property; 3) Any money connected to that home, including Insurance payouts if it’s damaged or destroyed, Proceeds if it’s sold and claims, warranties, or settlement money. If the loan isn’t repaid, the lender can take and sell the manufactured home (and any related insurance or sale proceeds) to recover the money owed.

References in the Security Agreement (Section A & D):

References in the Exhibit A of the UCC-1:

Related Records/Accounts/Proceeds/Interest in Other Property as Collateral:

Basically, the lender has a claim on almost everything the business owns or will own. More specifically, the collateral includes: All business assets, Money the business is owed, Business records and data, Cash and proceeds

References in the Security Agreement (Section A):

References in the Exhibit A of the UCC-1:

Titled Vehicle as Collateral:

This loan is secured mainly by a specific car and everything connected to it, giving the lender the right to take and sell the car if the loan isn’t paid, while still holding the borrower and guarantor personally responsible for any unpaid balance.

References in the Loan Agreement (Defined Terms, C.4(c),D.9(x)):

References in the Security Agreement (Section A, C & D):

References in the Exhibit A of the UCC-1: